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Globe and Mail
3 days ago
- Business
- Globe and Mail
Shell Q2 Earnings Beat Even as Production & Oil Prices Fall
Europe's largest oil company, Shell plc SHEL, reported second-quarter 2025 earnings per ADS (on a current cost of supplies basis, excluding items — the market's preferred measure) of $1.42, which came in well above the Zacks Consensus Estimate of $1.13 on the back of cost reductions and higher natural gas realizations. However, the bottom line fell from the year-ago adjusted profit of $1.97 due to lower upstream production plus a decline in oil prices. Shell's revenues of $66.4 billion were down from $75.1 billion in second-quarter 2024 and missed the consensus mark by 9.9%. Meanwhile, Shell repurchased $3.5 billion in shares in the second quarter. The London-based company expects another $3.5 billion worth of repurchases for the third quarter. Inside Shell's Segments Upstream: The segment recorded a profit of $1.7 billion (excluding items) during the quarter, down from $2.3 billion (adjusted) in the year-ago period. This primarily reflects the impact of lower production and oil prices. At $63.62 per barrel, the group's worldwide realized liquids prices were some 19% below the year-earlier levels, but natural gas prices rose roughly 11%. Shell's upstream volumes averaged 1,732 thousand oil-equivalent barrels per day (MBOE/d), down 2.9% from the year-ago period, mainly due to a dip in natural gas churned out by the company. Liquids production totaled 1,334 thousand barrels per day (an increase of 2.9% year over year), and natural gas output came in at 2,310 million standard cubic feet per day (down 18%). Chemicals and Products: In this segment, the London-based supermajor reported an adjusted profit of $118 million, plunging more than 89% from $1.1 billion earned in the year-ago period. The unfavorable comparison was due to lower margins. Meanwhile, refinery utilization came in at 94%. Integrated Gas: The unit reported an adjusted income of $1.7 billion, deteriorating from $2.7 billion in the April-June quarter of 2024. Results were primarily impacted by lower production available for sale, which fell 6.8% from the second quarter of 2024 to 913 MBOE/d. However, LNG sales volumes were up 8.3% year over year to 17.77 million tons. Marketing: The segment recorded an income of $1.2 billion (excluding items) during the quarter compared to the year-ago earnings of $1.1 billion, due to higher margins and favorable tax movements. Renewables and Energy Solutions: The segment incurred an adjusted loss of $9 million, reflecting an improvement from the year-ago loss of $187 million. The performance boost primarily reflects lower operating expense and favorable tax movements. External power sales were down 5.4% year over year to 70 terawatt hours, while piped gas sales fell 10.8% to 132 terawatt hours. Financial Performance As of June 30, 2025, the Zacks Rank #3 (Hold) company had $32.7 billion in cash and $75.7 billion in debt (including short-term debt). Net debt-to-capitalization was approximately 19.1%, up from 17% a year ago. You can see the complete list of today's Zacks #1 Rank stocks here. During the quarter under review, Shell generated cash flow from operations of $11.9 billion, returned $2.1 billion to its shareholders through dividends, and spent $5.4 billion on capital projects. The company's cash flow from operations decreased 11.6% from the year-earlier level. Meanwhile, the group raked in $6.5 billion in free cash flow during the second quarter compared to $10.2 billion a year ago. Guidance Shell expects third-quarter 2025 upstream volumes of 1,700-1,900 MBOE/d, while Integrated Gas production is expected between 910 MBOE/d and 970 MBOE/d. The company also foresees marketing sales volumes of 2,600-3,100 thousand barrels per day and refinery utilization in the range of 88-96%. Important Energy Earnings So Far While we have discussed Shell's second-quarter results in detail, let's take a look at some other Big Oil energy reports of this season. American multinational ExxonMobil XOM reported second-quarter 2025 earnings per share of $1.64 (excluding identified items), which beat the Zacks Consensus Estimate of $1.49. The bottom line, however, declined from the year-ago level of $2.14. ExxonMobil's total quarterly revenues of $81.5 billion missed the Zacks Consensus Estimate of $82.8 billion. The top line decreased from the year-ago figure of $93.1 billion. ExxonMobil's better-than-expected quarterly earnings were fueled by higher liquid production from the United States and stronger industry refining margins resulting from higher seasonal demand and increased volumes. The positives were partially offset by lower crude oil and natural gas prices. Smaller rival Chevron CVX reported adjusted EPS of $1.77, beating the Zacks Consensus Estimate of $1.70. The outperformance stemmed from higher-than-expected production in the company's key upstream segment. The company's output of 3,396 MBOE/d — a record — came in above the consensus mark of 3,326 MBOE/d. Healthy gain in natural gas realizations and stronger refined product sales margins also played their part. Chevron recorded $8.6 billion in cash flow from operations compared to $6.3 billion in the year-ago period due to the absence of prior-year working capital outflows and higher cash distributions from Kazakhstan. Chevron's free cash flow for the quarter was $4.9 billion. London-based BP plc BP reported second-quarter 2025 adjusted EPS of 90 cents. The figure beat the Zacks Consensus Estimate of 68 cents but declined from the year-ago reported figure of $1.00. BP's better-than-expected quarterly earnings can be primarily attributed to higher oil production, which was partially offset by lower price realizations. BP expects third-quarter 2025 upstream production to dip slightly from the prior-quarter level. It also anticipates a seasonal rise in customers' business volumes and a significant decline in its refinery turnaround activity. Taxes are projected to increase by about $1 billion due to payment timing. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. BP p.l.c. (BP): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report
Business Wire
01-08-2025
- Business
- Business Wire
ExxonMobil Announces Second-Quarter 2025 Results
SPRING, Texas--(BUSINESS WIRE)--Exxon Mobil Corporation (NYSE:XOM): Exxon Mobil Corporation today announced second-quarter 2025 earnings of $7.1 billion, or $1.64 per share assuming dilution. Cash flow from operating activities was $11.5 billion and free cash flow was 5.4 billion. Shareholder distributions totaled $9.2 billion, including $4.3 billion of dividends and $5.0 billion of share repurchases, consistent with the company's announced plans. 'The second quarter, once again, proved the value of our strategy and competitive advantages, which continue to deliver for our shareholders no matter the market conditions or geopolitical developments,' said Darren Woods, ExxonMobil chairman and chief executive officer. 'We achieved our highest second-quarter Upstream production since the merger of Exxon and Mobil more than 25 years ago. It was also our best quarter yet for high-value product sales volumes in Product Solutions. Since 2019, we've delivered $13.5 billion in structural cost savings, more than all other IOCs combined. 4 And our 2030 structural cost savings plan exceeds their cumulative cost savings targets. 4 We began start-up operations for the first six of ten key projects this year and remain on track to start up the remaining four. Collectively, these projects are expected to improve our earnings power by more than $3 billion in 2026 at constant prices and margins. 5 These results demonstrate how our competitive advantages are delivering industry-leading value today and providing a long runway of profitable growth far into the future.' 1 Earnings and cash flow from operations, adjusted for consistency on items reported under U.S. GAAP for the IOCs with actual reported results on or before July 31, 2025, or using reported FactSet consensus as of July 31, 2025. IOCs includes each of BP, Chevron, Shell and TotalEnergies. 2 Shareholder distributions for the IOCs are actuals for companies that reported results on or before July 31, 2025, or estimated using FactSet consensus as of July 31, 2025. IOCs includes each of BP, Chevron, Shell and TotalEnergies. 3 Assuming dilution. 4 IOC structural cost savings reflect reported cost savings as of July 31, 2025. Sourced from IOC disclosures. 5 Earnings contributions are adjusted to 2024 $65/bbl real Brent (assumes annual inflation of 2.5%) and 10-year average Energy, Chemical, and Specialty Product margins, which refer to the average of annual margins from 2010-2019. Expand Financial Highlights Year-to-date earnings were $14.8 billion versus $17.5 billion in the first half of 2024. Advantaged volume growth in the Permian and Guyana, additional structural cost savings and favorable timing effects partially offset lower earnings due to weaker crude prices, a decline in industry refining margins, higher depreciation costs and lower base volumes from strategic divestments. The company achieved year-to-date Structural Cost Savings of $1.4 billion. Since 2019, the company has delivered $13.5 billion of cumulative Structural Cost Savings, more than all cost savings reported by other IOCs combined. The company expects to deliver $18 billion of cumulative savings through the end of 2030 versus 2019, also exceeding the total targets disclosed by other IOCs. Generated strong cash flow from operations of $24.5 billion and free cash flow of $14.2 billion in the first half of the year. Industry-leading year-to-date shareholder distributions of $18.4 billion included $8.6 billion of dividends and $9.8 billion of share repurchases, consistent with the company's plan to deliver $20 billion of share repurchases this year. The company has repurchased approximately 40% of shares issued to acquire Pioneer Natural Resources since May of 2024. The Corporation declared a third-quarter dividend of $0.99 per share, payable on September 10, 2025, to shareholders of record of Common Stock at the close of business on August 15, 2025. The company's industry-leading debt-to-capital and net-debt-to-capital ratio was 13% and 8%, respectively, reflecting debt repayment of $4.7 billion year-to-date. The period-end cash balance was $15.7 billion. 1 Cash capital expenditures were $6.3 billion in the second quarter, bringing year-to-date spending to $12.3 billion. This includes $12.2 billion of additions to property, plant and equipment during the first half of 2025. The company expects full-year cash capital expenditures of $27 billion to $29 billion, consistent with previous guidance. 1 Net debt is total debt of $39.0 billion less $14.4 billion of cash and cash equivalents excluding restricted cash. Net-debt to-capital ratio is net debt divided by the sum of net debt and total equity of $270.0 billion. Period-end cash balance includes cash and cash equivalents including restricted cash. ExxonMobil has lower net debt-to-capital and debt-to-capital than all IOCs. Net debt-to-capital and debt-to-capital are sourced from Bloomberg. Figures are actuals for IOCs that reported results on or before July 31, 2025, or estimated using Bloomberg consensus as of July 31, 2025. Expand Upstream year-to-date earnings were $12.2 billion, a decrease of $576 million compared to the first half of 2024. Advantaged assets volume growth in the Permian and Guyana, structural cost savings, favorable foreign exchange, tax impacts and timing effects contributed to earnings. These gains were more than offset by weaker crude realizations and higher depreciation. Year-to-date net production increased 13%, or 520,000 oil-equivalent barrels per day, to 4.6 million oil-equivalent barrels per day driven by the acquisition of Pioneer, partly offset by non-core asset divestments. Second-quarter earnings were $5.4 billion, a decrease of $1.4 billion from the first quarter. Lower crude and natural gas realizations were partially offset by volume growth from advantaged assets, which included record Permian production of 1.6 million oil-equivalent barrels per day, along with structural cost savings. Second-quarter net production was 4.6 million oil-equivalent barrels per day, the highest second-quarter output since the Exxon and Mobil merger more than 25 years ago, and an increase of 79,000 oil-equivalent barrels per day compared to the first quarter. Energy Products year-to-date 2025 earnings were $2.2 billion, a decrease of $129 million versus the first half of 2024. Weaker industry refining margins were mostly offset by structural cost savings, lower scheduled maintenance, favorable timing effects and the absence of unfavorable inventory impacts. Second-quarter earnings were $1.4 billion, an increase of $539 million from the first quarter driven by stronger industry refining margins from higher seasonal demand and higher volumes from lower scheduled maintenance, partially offset by unfavorable foreign exchange. The company recently commenced start-up operations at its Fawley Hydrofiner in the United Kingdom. Once fully operational, the facility will upgrade high-sulfur, lower-value distillates to produce an additional 37,000 barrels per day of ultra-low sulfur diesel, growing the company's portfolio of higher value products. The company's Strathcona Renewable Diesel project, Canada's largest renewable diesel facility, has commenced operations, contributing to the growth of higher value products by adding 20,000 barrels per day of capacity. 1 Chemical Products year-to-date earnings were $566 million, a decrease of $998 million versus the first half of 2024. Results were affected by weaker margins and higher project-driven expenses related to the China Chemical Complex, partially offset by structural cost savings. Second-quarter earnings of $293 million were comparable to the first quarter. Higher sales volumes driven by the China Chemical Complex ramp-up offset weaker margins from lower North America feed advantage. 1 Optimizing current production based on product demand, compliance requirements and supplier capabilities for both the renewable feedstock and also the required hydrogen for processing. Expand Specialty Products continued to deliver strong earnings from its portfolio of high-value products. Year-to-date earnings were $1.4 billion, a decrease of $77 million compared to the first half of the prior year. Higher expenses, including spending on Proxxima TM systems and carbon materials market development, and unfavorable foreign exchange were partially offset by stronger margins and structural cost savings. Earnings increased $125 million versus the first quarter. Stronger basestock margins and record high-value product sales volumes were partially offset by higher new market development costs. The company began start-up of the Singapore Resid Upgrade project during the quarter. Once fully operational, the facility will convert 80,000 barrels per day of lower value fuel oil to higher value products, including 20,000 barrels per day of performance lubricant basestocks for Specialty Products and 50,000 barrels per day of distillates for Energy Products. Corporate and Financing year-to-date net charges of $1.6 billion increased $885 million compared to the first half of 2024 mainly due to lower interest income, unfavorable foreign exchange and increased pension-related expenses. Second-quarter net charges of $759 million decreased $39 million versus the first quarter. CASH FLOW FROM OPERATIONS AND ASSET SALES EXCLUDING WORKING CAPITAL Expand 2Q25 1Q25 Dollars in millions (unless otherwise noted) YTD 2025 YTD 2024 7,354 8,033 Net income/(loss) including noncontrolling interests 15,387 18,137 6,101 5,702 Depreciation and depletion (includes impairments) 11,803 10,599 (3,970) (878) Changes in operational working capital, excluding cash and debt (4,848) (2,608) 2,065 96 Other 2,161 (904) 11,550 12,953 Cash Flow from Operating Activities (U.S. GAAP) 24,503 25,224 176 1,823 Proceeds from asset sales and returns of investments 1,999 1,629 11,726 14,776 Cash Flow from Operations and Asset Sales (non-GAAP) 26,502 26,853 3,970 878 Less: Changes in operational working capital, excluding cash and debt 4,848 2,608 15,696 15,654 Cash Flow from Operations and Asset Sales excluding Working Capital (non-GAAP) 31,350 29,461 (176) (1,823) Less: Proceeds from asset sales and returns of investments (1,999) (1,629) 15,520 13,831 Cash Flow from Operations excluding Working Capital (non-GAAP) 29,351 27,832 Expand CASH CAPITAL EXPENDITURES Expand 2Q25 1Q25 Dollars in millions (unless otherwise noted) YTD 2025 YTD 2024 6,283 5,898 Additions to property, plant and equipment 12,181 11,309 319 153 Additional investments and advances 472 744 (246) (93) Other investing activities including collection of advances (339) (224) (23) (22) Inflows from noncontrolling interests for major projects (45) (12) 6,333 5,936 Total Cash Capital Expenditures (non-GAAP) 12,269 11,817 2Q25 1Q25 Dollars in millions (unless otherwise noted) YTD 2025 YTD 2024 Upstream 3,407 2,983 United States 6,390 5,251 2,262 2,010 Non-U.S. 4,272 4,205 5,669 4,993 Total 10,662 9,456 Energy Products 154 127 United States 281 297 8 251 Non-U.S. 259 687 162 378 Total 540 984 Chemical Products 171 154 United States 325 228 108 137 Non-U.S. 245 579 279 291 Total 570 807 Specialty Products 43 52 United States 95 24 54 58 Non-U.S. 112 139 97 110 Total 207 163 Other 126 164 Other 290 407 6,333 5,936 Worldwide 12,269 11,817 Expand CALCULATION OF STRUCTURAL COST SAVINGS Dollars in billions (unless otherwise noted) Twelve Months Ended December 31, Six Months Ended June 30, 2019 2024 2024 2025 Components of Operating Costs From ExxonMobil's Consolidated Statement of Income (U.S. GAAP) Production and manufacturing expenses 36.8 39.6 18.9 20.2 Selling, general and administrative expenses 11.4 10.0 5.1 5.1 Depreciation and depletion (includes impairments) 19.0 23.4 10.6 11.8 Exploration expenses, including dry holes 1.3 0.8 0.3 0.3 Non-service pension and postretirement benefit expense 1.2 0.1 0.1 0.2 Subtotal 69.7 74.0 34.9 37.6 ExxonMobil's share of equity company expenses (non-GAAP) 9.1 9.6 4.7 5.2 Total Adjusted Operating Costs (non-GAAP) 78.8 83.6 39.6 42.8 Total Adjusted Operating Costs (non-GAAP) 78.8 83.6 39.6 42.8 Less: Depreciation and depletion (includes impairments) 19.0 23.4 10.6 11.8 Non-service pension and postretirement benefit expense 1.2 0.1 0.1 0.2 Other adjustments (includes equity company depreciation and depletion) 3.6 3.7 1.7 2.4 Total Cash Operating Expenses (Cash Opex) (non-GAAP) 55.0 56.4 27.2 28.4 Energy and production taxes (non-GAAP) 11.0 13.9 6.8 7.6 Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (non-GAAP) 44.0 42.5 20.4 20.8 Change vs 2019 Change vs 2024 Estimated Cumulative vs 2019 Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (non-GAAP) -1.5 +0.4 Market +4.0 +0.3 Activity / Other +6.6 +1.5 Structural Cost Savings -12.1 -1.4 -13.5 Expand This press release references Structural Cost Savings, which describes decreases in cash opex excluding energy and production taxes as a result of operational efficiencies, workforce reductions, divestment-related reductions, and other cost-saving measures, that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative Structural Cost Savings totaled $13.5 billion, which included an additional $1.4 billion in the first six months of 2025. The total change between periods in expenses above will reflect both Structural Cost Savings and other changes in spend, including market drivers, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations, mergers and acquisitions, new business venture development, and early-stage projects. Structural Cost Savings from new operations, mergers and acquisitions, and new business venture developments are included in the cumulative Structural Cost Savings. Estimates of cumulative annual Structural Cost Savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels. Structural Cost Savings are stewarded internally to support management's oversight of spending over time. This measure is useful for investors to understand the Corporation's efforts to optimize spending through disciplined expense management. ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on August 1, 2025. To listen to the event or access an archived replay, please visit Selected Earnings Driver Definitions Advantaged volume growth. Represents earnings impact from change in volume/mix from advantaged assets, advantaged projects, and high-value products. See frequently used terms on page 11 for definitions of advantaged assets, advantaged projects, and high-value products. Base volume. Represents and includes all volume/mix drivers not included in advantaged volume growth driver defined above. Structural cost savings. Represents after-tax earnings effect of Structural Cost Savings as defined on page 8, including cash operating expenses related to divestments. Expenses. Represents and includes all expenses otherwise not included in other earnings drivers. Timing effects. Represents timing effects that are primarily related to unsettled derivatives (mark-to-market) and other earnings impacts driven by timing differences between the settlement of derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting). Cautionary Statement Statements related to future events; projections; descriptions of strategic, operating, and financial plans and objectives; statements of future ambitions, future earnings power, potential addressable markets, or plans; and other statements of future events or conditions in this release, are forward-looking statements. Similarly, discussion of future carbon capture, transportation and storage, as well as lower-emission fuels, hydrogen, ammonia, lithium, direct air capture, Proxxima TM systems, carbon materials, low-carbon data centers, and other low carbon and new business plans to reduce emissions of ExxonMobil, its affiliates, and third parties, are dependent on future market factors, such as continued technological progress, stable policy support and timely rule-making and permitting, and represent forward-looking statements. Actual future results, including financial and operating performance; potential earnings, cash flow, or rate of return; total capital expenditures and mix, including allocations of capital to low carbon and other new investments; realization and maintenance of structural cost reductions and efficiency gains, including the ability to offset inflationary pressure; plans to reduce future emissions and emissions intensity; ambitions to reach Scope 1 and Scope 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in heritage Permian Basin unconventional operated assets by 2030 and in Pioneer Permian assets by 2035, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, to reach near-zero methane emissions from its operated assets and other methane initiatives, and to meet ExxonMobil's emission reduction goals and plans, divestment and start-up plans, and associated project plans as well as technology advances, including the timing and outcome of projects to capture and store CO2, produce hydrogen and ammonia, produce lower-emission fuels, produce lithium, produce Proxxima TM systems, create new advanced carbon materials, and use plastic waste as feedstock for advanced recycling; cash flow, dividends and shareholder returns, including the timing and amounts of share repurchases; future debt levels and credit ratings; business and project plans, timing, costs, capacities and returns; resource recoveries and production rates; and planned Pioneer and Denbury integrated benefits, could differ materially due to a number of factors. These include global or regional changes or imbalances in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market factors, economic conditions and seasonal fluctuations that impact prices, differentials, and volume/mix for our products; changes in any part of the world in laws, taxes, or regulations including environmental and tax regulations, trade sanctions, and timely granting of governmental permits and certifications; developments or changes in government policies supporting lower carbon and new market investment opportunities or policies limiting the attractiveness of future investment such as the additional European taxes on the energy sector and unequal support for different methods of emissions reduction; variable impacts of trading activities on our margins and results each quarter; changes in interest and exchange rates; actions of competitors and commercial counterparties; the outcome of commercial negotiations, including final agreed terms and conditions; the ability to access debt markets; the ultimate impacts of public health crises, including the effects of government responses on people and economies; reservoir performance, including variability and timing factors applicable to unconventional resources, the success of new unconventional technologies, and the ability of new technologies to improve the recovery relative to competitors; the level and outcome of exploration projects and decisions to invest in future reserves; timely completion of development and other construction projects and commencement of start-up operations, including reliance on third-party suppliers and service providers; final management approval of future projects and any changes in the scope, terms, or costs of such projects as approved; government regulation of our growth opportunities; war, civil unrest, attacks against the company or industry and other political or security disturbances; expropriations, seizure, or capacity, insurance, export, import or shipping limitations by foreign governments or laws; changes in market, national or regional tariffs or realignment of global trade and supply chain networks; opportunities for potential acquisitions, investments or divestments and satisfaction of applicable conditions to closing, including timely regulatory approvals; the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies without impairing our competitive positioning; unforeseen technical or operating difficulties and unplanned maintenance; the development and competitiveness of alternative energy and emission reduction technologies; the results of research programs and the ability to bring new technologies to commercial scale on a cost-competitive basis; and other factors discussed under Item 1A. Risk Factors of ExxonMobil's 2024 Form 10-K. Actions needed to advance ExxonMobil's 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on ExxonMobil's Global Outlook (Outlook) research and publication. The Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. Current trends for policy stringency and deployment of lower-emission solutions are not yet on a pathway to achieve net-zero by 2050. As such, the Outlook does not project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and ExxonMobil's business plans will be updated accordingly. References to projects or opportunities may not reflect investment decisions made by ExxonMobil or its affiliates. Individual projects or opportunities may advance based on a number of factors, including availability of stable and supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with our partners and other stakeholders. Capital investment guidance in lower-emission investments is based on our corporate plan; however, actual investment levels will be subject to the availability of the opportunity set and public policy support, and focused on returns. Frequently Used Terms and Non-GAAP Measures This press release includes cash flow from operations and asset sales (non-GAAP). Because of the regular nature of our asset management and divestment program, the company believes it is useful for investors to consider proceeds associated with the sales of subsidiaries, property, plant and equipment, and sales and returns of investments together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities. A reconciliation to net cash provided by operating activities for the 2024 and 2025 periods is shown on page 6. This press release also includes cash flow from operations excluding working capital (non-GAAP), and cash flow from operations and asset sales excluding working capital (non-GAAP). The company believes it is useful for investors to consider these numbers in comparing the underlying performance of the company's business across periods when there are significant period-to-period differences in the amount of changes in working capital. A reconciliation to net cash provided by operating activities for the 2024 and 2025 periods is shown on page 6. This press release also includes Earnings/(Loss) Excluding Identified Items (non-GAAP), which are earnings/(loss) excluding individually significant non-operational events with, typically, an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings/(loss) impact of an identified item for an individual segment may be less than $250 million when the item impacts several periods or several segments. Earnings/(loss) excluding Identified Items does include non-operational earnings events or impacts that are generally below the $250 million threshold utilized for identified items. When the effect of these events is significant in aggregate, it is indicated in analysis of period results as part of quarterly earnings press release and teleconference materials. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The Corporation believes this view provides investors increased transparency into business results and trends and provides investors with a view of the business as seen through the eyes of management. Earnings excluding Identified Items is not meant to be viewed in isolation or as a substitute for net income/(loss) attributable to ExxonMobil as prepared in accordance with U.S. GAAP. A reconciliation to each of corporate earnings and segment earnings are shown for 2025 and 2024 periods in Attachments II-a and II-b. Earnings per share amounts are shown on page 1 and in Attachment II-a, including a reconciliation to earnings/(loss) per common share – assuming dilution (U.S. GAAP). This press release also includes total taxes including sales-based taxes. This is a broader indicator of the total tax burden on the Corporation's products and earnings, including certain sales and value-added taxes imposed on and concurrent with revenue-producing transactions with customers and collected on behalf of governmental authorities ('sales-based taxes'). It combines 'Income taxes' and 'Total other taxes and duties' with sales-based taxes, which are reported net in the income statement. The company believes it is useful for the Corporation and its investors to understand the total tax burden imposed on the Corporation's products and earnings. A reconciliation to total taxes is shown in Attachment I-a. This press release also references free cash flow (non-GAAP). Free cash flow is the sum of net cash provided by operating activities, net cash flow used in investing activities excluding cash acquired from mergers and acquisitions, and inflows from noncontrolling interests for major projects from financing activities. This measure is useful when evaluating cash available for financing activities, including shareholder distributions, after investment in the business. Free cash flow is not meant to be viewed in isolation or as a substitute for net cash provided by operating activities. A reconciliation to net cash provided by operating activities for the 2024 and 2025 periods is shown on page 6. This press release also references total cash capital expenditures (non-GAAP). Cash capital expenditures are the sum of additions to property, plant and equipment; additional investments and advances; and other investing activities including collection of advances; reduced by inflows from noncontrolling interests for major projects, each from the Consolidated Statement of Cash Flows. The company believes it is a useful measure for investors to understand the cash impact of investments in the business, which is in line with standard industry practice. A breakdown of cash capex is shown on page 7. References to resources or resource base may include quantities of oil and natural gas classified as proved reserves, as well as quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term 'resource base' or similar terms are not intended to correspond to SEC definitions such as 'probable' or 'possible' reserves. A reconciliation of production excluding divestments, entitlements, and government mandates to actual production is contained in the Supplement to this release included as Exhibit 99.2 to the Form 8-K filed the same day as this news release. The term 'project' as used in this news release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Projects or plans may not reflect investment decisions made by the company. Individual opportunities may advance based on a number of factors, including availability of supportive policy, technology for cost-effective abatement, and alignment with our partners and other stakeholders. The company may refer to these opportunities as projects in external disclosures at various stages throughout their progression. Advantaged assets (Advantaged growth projects) when used in reference to the Upstream business, includes Permian, Guyana, and LNG. Advantaged projects refers to capital projects and programs of work that contribute to Energy, Chemical, and/or Specialty Products segments that drive integration of segments/businesses, increase yield of higher value products, or deliver higher than average returns. Base portfolio (Base) in our Upstream segment, refers to assets (or volumes) other than advantaged assets (or volumes from advantaged assets). In our Energy Products segment, refers to assets (or volumes) other than advantaged projects (or volumes from advantaged projects). In our Chemical Products and Specialty Products segments refers to volumes other than high-value products volumes. Compound annual growth rate (CAGR) represents the consistent rate at which an investment or business result would have grown had the investment or business result compounded at the same rate each year. Debt-to-capital ratio is total debt divided by the sum of total debt and equity. Total debt is the sum of notes and loans payable and long-term debt, as reported in the Consolidated Balance Sheet. Government mandates (curtailments) are changes to ExxonMobil's sustainable production levels as a result of production limits or sanctions imposed by governments. High-value products includes performance products and lower-emission fuels. Lower-emission fuels are fuels with lower life cycle emissions than conventional transportation fuels for gasoline, diesel and jet transport. Net-debt-to-capital ratio is net debt divided by the sum of net debt and total equity, where net debt is total debt net of cash and cash equivalents, excluding restricted cash. Total debt is the sum of notes and loans payable and long-term debt, as reported in the consolidated balance sheet. Performance products (performance chemicals, performance lubricants) refers to products that provide differentiated performance for multiple applications through enhanced properties versus commodity alternatives and bring significant additional value to customers and end-users. Total shareholder return (TSR) is defined by FactSet and measures the change in value of an investment in common stock over a specified period of time, assuming dividend reinvestment. FactSet assumes dividends are reinvested in stock at market prices on the ex-dividend date. Unless stated otherwise, total shareholder return is quoted on an annualized basis. This press release also references Structural Cost Savings, for more details see page 8. Unless otherwise indicated, year-to-date ('YTD') means as of the last business day of the most recent fiscal quarter. Reference to Earnings References to corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings, Upstream, Energy Products, Chemical Products, Specialty Products and Corporate and Financing earnings, and earnings per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests. Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relationships involving common activities and interests, and those words may not indicate precise legal relationships. ExxonMobil's ambitions, plans and goals do not guarantee any action or future performance by its affiliates or Exxon Mobil Corporation's responsibility for those affiliates' actions and future performance, each affiliate of which manages its own affairs. Throughout this press release, both Exhibit 99.1 as well as Exhibit 99.2, due to rounding, numbers presented may not add up precisely to the totals indicated. Dollars in millions (unless otherwise noted) June 30, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents 14,352 23,029 Cash and cash equivalents – restricted 1,359 158 Notes and accounts receivable – net 41,792 43,681 Inventories Crude oil, products and merchandise 21,364 19,444 Materials and supplies 4,007 4,080 Other current assets 2,234 1,598 Total current assets 85,108 91,990 Investments, advances and long-term receivables 46,092 47,200 Property, plant and equipment – net 295,356 294,318 Other assets, including intangibles – net 21,041 19,967 Total Assets 447,597 453,475 LIABILITIES Current liabilities Notes and loans payable 5,419 4,955 Accounts payable and accrued liabilities 59,725 61,297 Income taxes payable 3,017 4,055 Total current liabilities 68,161 70,307 Long-term debt 33,570 36,755 Postretirement benefits reserves 10,352 9,700 Deferred income tax liabilities 39,368 39,042 Long-term obligations to equity companies 1,113 1,346 Other long-term obligations 25,071 25,719 Total Liabilities 177,635 182,869 EQUITY Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) 46,629 46,238 Earnings reinvested 477,061 470,903 Accumulated other comprehensive income (12,436) (14,619) Common stock held in treasury (3,756 million shares at June 30, 2025, and 3,666 million shares at December 31, 2024) (248,661) (238,817) ExxonMobil share of equity 262,593 263,705 Noncontrolling interests 7,369 6,901 Total Equity 269,962 270,606 Total Liabilities and Equity 447,597 453,475 Expand Dollars in millions (unless otherwise noted) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income/(loss) including noncontrolling interests 15,387 18,137 Depreciation and depletion (includes impairments) 11,803 10,599 Changes in operational working capital, excluding cash and debt (4,848) (2,608) All other items – net 2,161 (904) Net cash provided by operating activities 24,503 25,224 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (12,181) (11,309) Proceeds from asset sales and returns of investments 1,999 1,629 Additional investments and advances (472) (744) Other investing activities including collection of advances 339 224 Cash acquired from mergers and acquisitions — 754 Net cash used in investing activities (10,315) (9,446) CASH FLOWS FROM FINANCING ACTIVITIES Additions to long-term debt 883 217 Reductions in long-term debt (13) (1,142) Additions to short-term debt 172 — Reductions in short-term debt (4,676) (2,771) Additions/(Reductions) in debt with three months or less maturity 257 (6) Contingent consideration payments (79) (27) Cash dividends to ExxonMobil shareholders (8,623) (8,093) Cash dividends to noncontrolling interests (452) (397) Changes in noncontrolling interests (10) 4 Inflows from noncontrolling interests for major projects 45 12 Common stock acquired (9,768) (8,337) Net cash provided by (used in) financing activities (22,264) (20,540) Effects of exchange rate changes on cash 600 (318) Increase/(Decrease) in cash and cash equivalents (including restricted) (7,476) (5,080) Cash and cash equivalents at beginning of period (including restricted) 23,187 31,568 Cash and cash equivalents at end of period (including restricted) 15,711 26,488 Expand ATTACHMENT II-a KEY FIGURES: IDENTIFIED ITEMS Expand ATTACHMENT II-b KEY FIGURES: IDENTIFIED ITEMS BY SEGMENT Expand YTD 2025 Upstream Energy Products Chemical Products Specialty Products Corporate & Financing Total Dollars in millions (unless otherwise noted) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Earnings/(Loss) (U.S. GAAP) 3,082 9,076 1,122 1,071 510 56 613 822 (1,557) 14,795 Total Identified Items — — — — — — — — — — Expand YTD 2024 Upstream Energy Products Chemical Products Specialty Products Corporate & Financing Total Dollars in millions (unless otherwise noted) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Earnings/(Loss) (U.S. GAAP) 3,484 9,250 1,286 1,036 1,030 534 851 661 (672) 17,460 Total Identified Items — — — — — — — — — — Earnings/(Loss) Excl. Identified Items (non-GAAP) 3,484 9,250 1,286 1,036 1,030 534 851 661 (672) 17,460 Expand 2Q25 1Q25 Net production of crude oil, natural gas liquids, bitumen and synthetic oil, thousand barrels per day (kbd) YTD 2025 YTD 2024 1,494 1,418 United States 1,456 1,038 797 760 Canada/Other Americas 779 767 3 4 Europe 4 4 139 137 Africa 138 220 801 796 Asia 799 712 25 24 Australia/Oceania 25 30 3,259 3,139 Worldwide 3,201 2,771 2Q25 1Q25 Net natural gas production available for sale, million cubic feet per day (mcfd) YTD 2025 YTD 2024 3,313 3,266 United States 3,290 2,570 24 42 Canada/Other Americas 33 104 312 331 Europe 321 354 106 118 Africa 112 158 3,206 3,457 Asia 3,331 3,380 1,258 1,256 Australia/Oceania 1,257 1,236 8,219 8,470 Worldwide 8,344 7,802 4,630 4,551 Oil-equivalent production (koebd) ¹ 4,591 4,071 1 Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. Expand ATTACHMENT IV KEY FIGURES: MANUFACTURING THROUGHPUT AND SALES Expand 2Q25 1Q25 Refinery throughput, thousand barrels per day (kbd) YTD 2025 YTD 2024 1,969 1,789 United States 1,880 1,823 376 397 Canada 387 397 969 986 Europe 977 970 442 447 Asia Pacific 444 424 180 191 Other 185 177 3,936 3,810 Worldwide 3,873 3,791 2Q25 1Q25 Energy Products sales, thousand barrels per day (kbd) YTD 2025 YTD 2024 2,906 2,728 United States 2,817 2,607 2,682 2,555 Non-U.S. 2,619 2,669 5,588 5,283 Worldwide 5,436 5,276 2,294 2,162 Gasolines, naphthas 2,229 2,210 1,808 1,724 Heating oils, kerosene, diesel 1,766 1,730 387 366 Aviation fuels 376 342 247 158 Heavy fuels 203 197 852 873 Other energy products 862 797 5,588 5,283 Worldwide 5,436 5,276 2Q25 1Q25 Chemical Products sales, thousand metric tons (kt) YTD 2025 YTD 2024 1,771 1,706 United States 3,477 3,649 3,493 3,070 Non-U.S. 6,563 6,278 5,264 4,776 Worldwide 10,040 9,927 2Q25 1Q25 Specialty Products sales, thousand metric tons (kt) YTD 2025 YTD 2024 504 473 United States 977 1,001 1,500 1,463 Non-U.S. 2,963 2,892 2,004 1,936 Worldwide 3,940 3,893 Expand ATTACHMENT V KEY FIGURES: EARNINGS/(LOSS) Expand Results Summary 2Q25 1Q25 Change vs 1Q25 Dollars in millions (except per share data) YTD 2025 YTD 2024 Change vs YTD 2024 7,082 7,713 -631 Earnings (U.S. GAAP) 14,795 17,460 -2,665 7,082 7,713 -631 Earnings Excluding Identified Items (non-GAAP) 14,795 17,460 -2,665 1.64 1.76 -0.12 Earnings Per Common Share ¹ 3.40 4.20 -0.80 1.64 1.76 -0.12 Earnings Excluding Identified Items Per Common Share (non-GAAP) ¹ 3.40 4.20 -0.80 ¹ Assuming dilution. Expand ATTACHMENT VI KEY FIGURES: EARNINGS/(LOSS) BY QUARTER Dollars in millions (unless otherwise noted) 2025 2024 2023 2022 2021 First Quarter 7,713 8,220 11,430 5,480 2,730 Second Quarter 7,082 9,240 7,880 17,850 4,690 Third Quarter — 8,610 9,070 19,660 6,750 Fourth Quarter — 7,610 7,630 12,750 8,870 Full Year — 33,680 36,010 55,740 23,040 Dollars per common share¹ 2025 2024 2023 2022 2021 First Quarter 1.76 2.06 2.79 1.28 0.64 Second Quarter 1.64 2.14 1.94 4.21 1.10 Third Quarter — 1.92 2.25 4.68 1.57 Fourth Quarter — 1.72 1.91 3.09 2.08 Full Year — 7.84 8.89 13.26 5.39 1 Computed using the average number of shares outstanding during each period; assuming dilution. Expand
Yahoo
01-08-2025
- Business
- Yahoo
Shell PLC (SHEL) Q2 2025 Earnings Call Highlights: Strong Marketing Performance and Strategic ...
Adjusted Earnings: $4.3 billion for Q2 2025. Cash Flow from Operations: $11.9 billion in Q2 2025. Structural Cost Reductions: $800 million in the first half of 2025; total of $3.9 billion since 2022. Share Buyback Program: Announced $3.5 billion, marking the 15th consecutive quarter of $3 billion or more in buybacks. Marketing Performance: Best Q2 results in nearly a decade, with strong performance in Mobility and Lubricants. CapEx Outlook: Cash CapEx outlook for full year 2025 remains unchanged. Shareholder Distributions: 46% of CFFO over the last four quarters, within the target range of 40% to 50%. Warning! GuruFocus has detected 6 Warning Signs with DTM. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Shell PLC (NYSE:SHEL) achieved $800 million in structural cost reductions in the first half of 2025, contributing to a total of $3.9 billion since 2022, on track for a target of $5 billion to $7 billion by 2028. The startup of LNG Canada, where Shell holds a 40% interest, marks a significant milestone, offering strategic advantages with shorter transit routes to Asia. Shell's marketing segment recorded its best Q2 results in nearly a decade, driven by strong performance in Mobility and Lubricants. A new $3.5 billion share buyback program was announced, marking the 15th consecutive quarter of $3 billion or more in buybacks. Shell's Upstream business continues to outperform, with strong operational improvements and a focus on high-graded portfolios, particularly in the Gulf of Mexico and Brazil. Negative Points The macroeconomic environment remains challenging, with geopolitical uncertainties affecting commodity prices and margins. Chemicals and Products faced a difficult quarter due to weak margins and unplanned downtime, with continued negative free cash flow in the chemicals segment. Despite divestments, Shell's chemical business still struggles with excess capacity and market challenges, particularly in China. The Integrated Gas segment experienced fewer trading and optimization opportunities, with a disconnect between market volatility and supply-demand fundamentals. Shell's gearing level increased slightly, raising concerns about the sustainability of its buyback program if oil prices fall significantly. Q & A Highlights Q: Can you discuss the outlook for trading optimization businesses in the context of the challenging environment in Q2, and provide a breakdown between liquids, products, and gas? A: Wael Sawan, CEO, highlighted the strong performance of the Upstream business, emphasizing the focus on increasing cash flow per barrel and operational improvements. Sinead Gorman, CFO, explained that trading had a decent contribution in Q2, with each segment contributing differently. The renewables segment performed as expected, while LNG saw less volatility post-Russia-Ukraine conflict. Products had good results, but crude trading faced a disconnect between market volatility and fundamentals, leading to a more prudent approach. Q: How high are you willing to take the gearing level, and is there a need to slow down the $3 billion quarterly buyback program? A: Sinead Gorman, CFO, stated that the decision on gearing involves a trade-off between value and risk. With a current gearing of 19.1%, there is room for flexibility. The focus remains on maintaining a 40% to 50% distribution of cash flow from operations (CFFO) through the cycle. The company is comfortable with its balance sheet and will continue to prioritize shareholder returns. Q: Can you provide insights into the state of global oil demand given the strong marketing results and refining margins? A: Wael Sawan, CEO, noted that year-to-date oil products demand growth was robust at around 1 million barrels per day, despite headwinds. The company focuses on non-price dependent strategies, including structural cost reductions and disciplined capital allocation, to drive performance and shareholder value. Q: What are the opportunities for further cost savings, and is there still room for improvement in the Upstream segment? A: Wael Sawan, CEO, emphasized that cost reduction opportunities exist across the organization, including Upstream, functions, and supply chain. The company is focused on simplifying operations and leveraging AI to achieve $5 billion to $7 billion in cost reductions by 2028. The capital allocation strategy remains dynamic, with a high bar for acquisitions. Q: How resilient is the current buyback program to potential lower oil prices, and what are the moving parts for LNG over the next one to two years? A: Sinead Gorman, CFO, explained that the buyback program is supported by a strong balance sheet and a dynamic approach to cash flow management. The LNG business is expected to stabilize at a new normal, with changes in portfolio mix and contract expiries. The company remains focused on optimizing its LNG portfolio amid market changes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
Shell Warns of Weakness in Integrated Gas Business
Shell warned second-quarter Integrated Gas production and earnings to be lower than last quarter. The energy giant said Integrated Gas trading and optimization of would be "significantly lower" than in the first quarter. Shell explained that its Upstream production would also be down from last quarter, but said that was because of scheduled maintenance and the closing of a sale of operations in Nigeria.U.S.-listed shares of Shell (SHEL) declined when the energy giant warned about its current-quarter Integrated Gas operations. The London-based firm said Integrated Gas trading and optimization of would be "significantly lower" than in the first quarter, with production of between 900,000 and 940,000 oil-equivalent barrels per day (BOE/D) compared with 980,000 BOE/D a year ago and 927,000 in the first quarter. It expects Integrated Gas adjusted earnings of $1.4 billion to $1.8 billion, versus $2.68 billion in 2024 and $1.4 billion in Q1. The outlook for Upstream production was in range of 1.66 million to 1.76 million BOE/D, down from 1.78 million BOE/D a year ago and 1.86 million BOE/D last quarter, which the company noted reflected "scheduled maintenance and the completed sale of SPDC in Nigeria." Shell and other gas producers have been struggling with lower prices on higher U.S. output and relatively mild winter weather. Futures peaked in March and have dipped by about 25% since. Despite today's 2% declines, U.S.-listed shares of Shell are up about 12% year-to-date. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Edmonton Journal
04-07-2025
- Business
- Edmonton Journal
After stepping down for Poilievre to run, MP Damien Kurek lands role at government relations, lobbying firm
Article content The Alberta MP who stepped down to allow Conservative Leader Pierre Poilievre to run in his riding has a new job with a government relations and lobbying firm. Article content Article content Article content We are excited to announce the newest member of our team, former Parliamentarian @dckurek! Damien's deep roots in Alberta politics paired with his legislative experience make him the perfect fit to deliver strategic value to our clients in Western Canada. — Upstream Strategy (@upstream_group) July 4, 2025 Article content 'There's no better time than the Calgary Stampede for me to join Upstream Strategy Group,' Kurek said in a Friday statement. Article content 'Just like the Greatest Outdoor Show on Earth highlights our western heritage, I'm looking forward to helping organizations grow and succeed in Western Canada.' Article content Upstream said Kurek brings extensive experience to his new role, pointing to his time as the Conservative party's Canadian Heritage critic in the last Parliament, as well as his time as the Environment and Sustainable Development committee vice-chair. Before he was first elected to the House of Commons, Kurek worked under former Battle River-Crowfoot MP Kevin Sorenson and in the Saskatchewan legislature while Brad Wall was premier, Upstream also noted. Article content 'Raised and still actively involved on his family's multi-generational farm near Consort, Alberta, Kurek brings a unique perspective on the needs of rural communities and industries vital to the Prairies' economy,' said the company, which has offices in Toronto and Regina.
